Nevada lawmakers today approved money to cover the costs of the upcoming special election, received an update on the progress of the state’s health care insurance exchange and complained repeatedly that state agencies were thumbing their noses at the legislative process.

The Interim Finance Committee approved more than 100 requests for funds from nearly every state agency, but reprimanded a handful who legislators said were not adhering to budgets passed during the last legislative session.

“This is some of the most blatant disregard of legislative intent that I’ve ever seen,” said Sen. Sheila Leslie, D-Reno. “I hope this doesn’t continue this interim. I know these are tough times, but we must follow the law.”

Assemblywoman Debbie Smith, D-Sparks, the committee chair, also voiced concern several times that issues before the committee should have been resolved during the budgeting process.

When about $33,000 was requested to hire a consultant to help the Nevada Department of Transportation track the state’s inventory of vacant lands in compliance with Assembly Bill 404, Smith asked Paul Saucedo, NDOT chief right-of-way agent, why NDOT had not submitted a fiscal note delineating the need for that money with the bill.

Smith then almost tabled a request from the Department of Tourism and Cultural Affairs (DTCA) because it was found that the department is now using a contract worker to do the work of a job eliminated when the budgets were approved by the legislature.

“This is a budget discussion and should have taken place then,” said Smith.

In the end, the DTCA request for $84,616 in federal National Endowment for the Arts money was approved because the agency would miss a deadline to request the federal grant money if the request was pushed to the committee’s next meeting.

“Let’s move it ahead so as not to lose the federal money,” said Assemblyman Pete Goicoechea, R-Eureka. “In the meantime, staff can work with them on this contract employee. We may pay $8,000 for a few months of the employee, but that’s better than losing $84,000.”

The committee was also concerned about a request to transfer about $4.5 million from the budget for the University of Nevada, Reno (UNR) to the University of Nevada School of Medicine budget. The university’s goal was to keep the school of medicine budget cuts to a minimum in order to expand the school’s class sizes from 62 medical students to 100 and expand its nursing class from 98 students to 196, said Mark Johnson, UNR president.

Johnson said higher education had made certain programs a higher priority and was trying to maintain them while eliminating some and making others self supporting.

“We wanted a more fair and equitable approach,” said Sen. Steven Horsford, D-Las Vegas referring to the legislative intent of higher education cuts. “I feel we are going backward by protecting one program at the expense of others.”

The IFC also approved $539,137 to reimburse counties for costs incurred for the special election in the 2nd congressional district. Secretary of State Ross Miller said counties requested the money since none had budgeted for the special election. He said the money would cover fixed costs and would not be reduced by lower than anticipated turnout.

“This is the minimum amount needed to run it without jeopardizing the integrity of the election,” Miller told the committee.

Miller’s office requested the money from the state’s contingency fund, adding that $6 million the state has in reserve from the federal Help America Vote Act is not intended for special elections.

Lawmakers asked if the some of the money could come from an approximate $340,000 surplus in the Secretary’s office budget. Miller said his office is projecting a deficit, not a surplus and agreed to work with the Legislative Counsel Bureau staff to resolve the discrepancy in the budget projections of his office and the LCB.

The committee also received an update on the Silver State Health Insurance Exchange Nevada is building to meet requirements mandated by the Patient Protection and Affordable Care Act enacted by Congress.

The Department of Health and Human Services has received $1 million from the federal government for planning the exchange. HHS spent $320,000 in fiscal year 2011 and is rolling over the remainder into the next fiscal year. The department requested about $2.6 million of a $4 million establishment grant from the federal government to create a new agency and to fund four new positions – an executive director, operational officer, grants manager and executive assistant.

During the 2013 legislative session, the state will need to decide how to fund the exchange once federal support for it ends in 2015, said Michael Willden, HHS director.

Willden also said he was meeting with Gov. Brian Sandoval’s office later in the day about possible appointments to the board that will oversee the exchange. The board will consist of five members appointed by the governor, one member appointed by the state Senate majority leader, and one member chosen by the Assembly speaker.